Ever since the vehicle was first announced, Honda batted around the idea of releasing the vehicle in the U.S. with a price tag below $19,000. Today, however, Honda announced the official starting price of the Insight and it will actually be priced just below $20,000.

The 2010 Honda Insight LX will have a base price of $19,800 -- this compares to a $22,000 base price for the standard 2009 Toyota Prius. The next trim level is the Insight EX which will be priced at $21,300. Those that wish to have integrated GPS will have to part with $23,100.

The Honda Insight uses a 1.3-liter four-cylinder engine paired with the Integrated Motor Assist (IMA) hybrid system. The vehicle is EPA rated at 40 MPG in the city and 43 MPG on the highway.

The 2010 Honda Insight will face stiff competition from Toyota's third generation Prius. The 2010 Prius will launch later this year and will have an EPA combined rating of 50 MPG.

It is not known if Toyota will lower the price of entry of the new Prius to combat the Insight in the U.S. It's possible that Toyota may take a page from its Japanese strategy and offer the current Prius at a lower price and maintain the 2010 model as a "premium" offering.

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